What next? Ten questions for CFOs - The McKinsey Quarterly - Ten questions for CFOs - Corporate Finance - Capital Management

What next? Ten questions for CFOs - The McKinsey Quarterly - Ten questions for CFOs - Corporate Finance - Capital Management

As companies shift their attention from fighting the crisis to getting the most from the recovery, CFOs must keep them focused.

MAY 2009 • David Cogman, Richard Dobbs, and Massimo Giordano

Source:

Corporate Finance Practice

This short essay is a Conversation Starter, one in a series of invited opinions on topical issues. Read what the authors have to say, then let us know what you think.

The credit crisis and its shocks to the real economy have put chief financial officers on the front lines, as they implement

emergency measures to help companies survive the recession. Now, as an eventual recovery begins to seem more likely, the CFO’s task may become still more complex. Even for those whose companies avoided the most severe effects of the crisis, uncertainty about the future is abundant, and credit remains tight. Capital and management time are available for only a few relatively big moves, and a new appreciation of risk accompanies each opportunity.

So the CFO’s judgment will be critical to push the management team’s thinking on the opportunities and to cast a dispassionate eye over the costs, benefits, and risks of pursuing them. Here are ten questions we think all CFOs should be asking themselves and their executive colleagues as the recovery approaches. Read the questions and tell us what you think a CFO’s priorities should be coming out of the crisis.

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